The rapid evolution of digital payment systems has led to an increase in financial fraud, prompting financial institutions to employ advanced technologies like artificial intelligence (AI) and generative AI for protection. With digital payments projected to reach $11.55 trillion in 2024, fraud attempts have surged, with a notable 80% increase from 2019 to 2022, as cybercriminals use sophisticated methods like AI-generated phishing attacks. AI technologies, particularly machine learning and generative models, are enhancing fraud detection by identifying anomalies, analyzing user behavior, and examining network ecosystems to uncover fraud networks. Financial institutions are leveraging AI for real-time fraud prevention, identity verification, and compliance with anti-money laundering regulations, while also addressing ethical and regulatory concerns such as data privacy and the need for transparent AI algorithms. Elasticsearch, an open-source distributed search engine, plays a critical role in this fight by offering scalable, real-time data processing and search capabilities, enabling financial institutions to efficiently detect and respond to fraudulent activities. The future of fraud prevention relies on the integration of generative AI and tools like Elasticsearch to protect the financial system and its stakeholders effectively.